Question

what is specialization of india

Answer 1

We use standard Census of India data at the level of the city, to compute location quotients for all of India’s cities and towns, using the state as the reference area, and examine changes in the Indian cities’ economic base over time, using an ex ante classification of states/cities. Further we perform shift share analyses for selected large cities of the country, to determine the country’s urban specialization.

We find that on average, over 1991–2001, Indian cities’ specialization in manufacturing, declined. We find that no single city holds the same competitive position in a sector during the period, which implies that there is constant competition between cities even within a state. Further, in all non-agricultural economic sectors, cities in the lagging Indian states have core competence in most sectors. Based on the shift share analyses, we bust the myths that Delhi has local competence in public administration, and Mumbai is the financial capital of the country. We conclude with policy implications, caveats, and further steps for the research..


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